British Land, one of the UK's largest property companies, has reported an
increase in pre-tax profit of 6.6pc to £146m for the six months to 30
September.

British Land, one of the UK's largest property companies, has reported an increase in pre-tax profit of 6.6pc to £146m for the six months to 30 September.

The FTSE 100 company's net asset value, the key industry benchmark indicator, was up 4.5 per cent at 623p - 10p higher than analysts had expected and overshadowed the 3.8pc posted by rival Land Securities just a day ago.

British Land's retail porfolio also outperformed that of Land Securities with a valuation rise of 1.5pc.

The real estate investment trust, which controls a UK property portfolio worth more than £11bn, has sold £190m of its UK retail assets including shopping centres in Norhampton and Aberdeen and has invested £800m from its equity issue into Paddington Central.

Chris Grigg, chief executive of British Land, said: "The economy has surprised on the upside meaning retailers are more confident about where they want to be physically."

He added that the group has very little interest in high street sites apart from the odd department store. Mr Grigg confirmed the future of retail is in high quality, out of town complexes.

"We are putting more food and beverage units on to existing parks and trying to make sure that shopping is an enriching experience. Even if people are just shopping for functional items it's important they get a sense of arrival," he continued.

British Land's office portfolio also benefitted from its greater exposure to the West End, where values have risen 6pc from April to September. While the firm's city offices, including the Cheesegrater, have risen 3.6pc.

British Land has today added to its portfolio with the acquisition of retail development in Northern Ireland for £23m.